Jackson Enterprises, Inc. (Commission decision, September 26, 2011)

Plain-English summary

Jackson Enterprises defaulted after failing to file an answer with the Commission in response to a show-cause order. The operator said it had timely answered the Secretary's penalty petition but apparently mailed the answer only to the Secretary, and it said it never received the show-cause order. The Secretary did not oppose reopening and confirmed that the regional solicitor had received a timely answer. The Commission reopened the proceeding in the interest of justice, vacated the default, and remanded for further proceedings.

Decision snapshot

• Governing provisions: 30 U.S.C. § 823(d)(1), (2); 29 C.F.R. §§ 2700.1(b), 2700.69(b), 2700.70(a)
• Outcome: The default order was vacated and the penalty case was remanded.
• Key point: A timely answer mistakenly sent to the Secretary but not the Commission may support relief from a final default order.

Full text (FMSHRC public release)

Federal Mine Safety and Health Review Commission

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

601 NEW JERSEY AVENUE, NW

SUITE 9500

WASHINGTON, DC 20001

September 26, 2011

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

JACKSON ENTERPRISES, INC.

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Docket No. SE 2009-420-M

A.C. No. 40-01153-180427 VRG

BEFORE: Jordan, Chairman; Duffy, Young, Cohen, and Nakamura, Commissioners

ORDER

BY THE COMMISSION:

This matter arises under the Federal Mine Safety and Health Act of 1977, 30 U.S.C.
§ 801 et seq. (2006) (“Mine Act”). On February 18, 2011, the Commission received from Jackson Enterprises, Inc. (“Jackson”) a motion seeking to reopen a penalty assessment proceeding and relieve it from the order of default entered against it.

On October 6, 2010, Chief Judge Lesnick issued an Order to Show Cause and Order of Default in response to Jackson’s failure to answer the Secretary’s July 22, 2009 Petition for Assessment of Civil Penalty. In it, he ordered the operator to file its answer within 30 days or it would be in default. The Commission did not receive Jackson’s answer within 30 days, so the order of default became effective on November 8, 2010.

Jackson asserts it submitted a timely answer to the Secretary’s Petition for Assessment and did not receive the Order to Show Cause. However, it appears as if it mailed its answer to the Secretary but not to the Commission. The Secretary does not oppose the request to reopen and notes that the attorney handling this case in the Nashville Regional Solicitor’s Office confirms she received a timely answer to the penalty petition in this case.

The judge’s jurisdiction in this matter terminated when the default occurred. 29 C.F.R.
§ 2700.69(b). Under the Mine Act and the Commission’s procedural rules, relief from a judge’s decision may be sought by filing a petition for discretionary review within 30 days of its issuance. 30 U.S.C. § 823(d)(2); 29 C.F.R. § 2700.70(a). If the Commission does not direct review within 40 days of a decision’s issuance, it becomes a final decision of the Commission. 30 U.S.C. § 823(d)(1). Consequently, the judge’s order here has become a final decision of the Commission.

In evaluating requests to reopen final orders, the Commission has found guidance in Rule 60(b) of the Federal Rules of Civil Procedure under which, for example, a party could be entitled to relief from a final order of the Commission on the basis of mistake, inadvertence, or excusable neglect. See 29 C.F.R. § 2700.1(b) (“the Commission and its Judges shall be guided so far as practicable by the Federal Rules of Civil Procedure”); Jim Walter Res., Inc., 15 FMSHRC 782, 786-89 (May 1993) (“JWR”). We have also observed that default is a harsh remedy and that, if the defaulting party can make a showing of good cause for a failure to timely respond, the case may be reopened and appropriate proceedings on the merits permitted. See Coal Prep. Servs., Inc., 17 FMSHRC 1529, 1530 (Sept. 1995).

Having reviewed Jackson’s request and the Secretary’s response, in the interest of justice, we hereby reopen the proceeding and vacate the Order of Default. Accordingly, this case is remanded to the Chief Administrative Law Judge for further proceedings pursuant to the Mine Act and the Commission’s Procedural Rules, 29 C.F.R. Part 2700.

/s/______

Mary Lu Jordan, Chairman

/s/______

Michael F. Duffy, Commissioner

/s/______

Michael G. Young, Commissioner

/s/______

Robert F. Cohen, Jr., Commissioner

/s/______

Patrick K. Nakamura, Commissioner

Distribution:

Perry K. Ingram, President

Jackson Enterprises, Inc.

204 South Maple Street

Lebanon, TN 37087

W. Christian Schumann, Esq.

Office of the Solicitor

U.S. Department of Labor

1100 Wilson Blvd., Room 2220

Arlington, VA 22209-2296

Renita Hollins

Department of Labor

Office of the Solicitor

211 7th Avenue North, Suite 420

Nashville, TN 37219

Melanie Garris

Office of Civil Penalty Compliance

MSHA

US Department of Labor

1100 Wilson Blvd. 25th Floor

Arlington, VA 22209

Chief Administrative Law Judge Robert J. Lesnick

Federal Mine Safety & Health Review Commission

601 New Jersey Avenue, N.W., Suite 9500

Washington, D.C. 20001-2021